RR Maloan Investments, Inc. v. New HGE, Inc.

While I agree with the majority that a postdated check is a negotiable instrument, I would affirm the judgment and the trial judge’s implied finding that RR Ma-loan did not act in good faith either in cashing the check before its due date or in cashing the check without making any efforts to verify the check’s validity.

RR Maloan seeks recovery as a holder in due course. The holder of a negotiable instrument is a holder in due course if the holder takes the instrument (1) for value, (2) in good faith, and (3) without notice of any claim or defense to the instrument. Tex. Bus. & Com.Code Ann. §…